Taking a home loan is very easy, but the lifetime EMI can also bother you. Before taking such a huge loan, you must keep some things in mind.
Building a house is like breaking a mountain, where every brick has to be paid for. It takes years to build a house and if you have taken a loan then you have to pay the installments for many years to come. As far as home loan is concerned, almost every person has a doubt before taking it that whether he is going to take the right step? Would it be good to take a loan? From which bank is it right to take a loan?
All these questions are very important for a middle class person, after all a wrong decision can bring you lifelong debt. In such a situation, why not know some things from the experts about the home loan and its process. To know more about home loans, we spoke to Rahul, who works in the field of Investment, Insurance, Taxation and Financial Services.
According to Sweta Mehra, before taking a home loan, one should keep in mind that he should not take a home loan just to save tax. In such a situation, the interest on the home loan will be more than the tax. Sweta ji told us some things that everyone should keep in mind before taking a home loan.
First of all take care of your money-
Before taking a loan, you should keep in mind how your money is coming and spent. Many people think that if they can afford EMI then they should take home loan, but it is not so. Make sure to chart your money inflow (large amount of money inflow) and keep in mind that we should have some reserve funds in every situation.
Keep in mind the amount of EMI-
You should keep in mind that your EMI should not exceed 30% of your monthly salary/income. That is, if there is 100 rupees inward, then in no case should EMI be more than 30 rupees.
It is not right to take home loan to save tax-
This is not the era where a house will make you more than worth in 10 years. That time has passed and now along with the risk in real estate, the interest is also very high. So if you are thinking of taking a home loan just to save tax, then do not do it because in many cases the interest on your loan will be more than the amount of tax you have saved.
Take home loan with OD facility-
For those who do not know about it, let me tell you that OD means overdraft. In this, a home loan account can be opened in the bank itself and you can deposit extra money in it. This extra money will go into the home loan overdraft account as a prepayment of your loan. This will automatically get reduced by your loan amount. Before taking a home loan, you should check with your bank whether they can offer an OD facility. Federal Bank and SBI Bank offer this facility.
Take home loan only from the bank-
No matter how good the offer looks to you, taking a home loan from NBFC (A non-banking financial institution) will not be good for you. Bank home loan rates are more affordable and affordable.
Take a home loan for as long as possible-
Of course, everyone wants his loan to be settled quickly and he becomes free from debt, but it should always be done through planning. If you take a loan for a longer tenure, it will reduce your EMI. If you go by planning then you can repay your entire loan in 7 years also, but it is not right to take extra burden on yourself. So keeping the EMI low is the right thing to do.
Which bank gets how much interest?
Recently Kotak Mahindra Bank and State Bank of India have reduced their home loan interest. Kotak Mahindra Bank is currently giving loan at the cheapest interest. The interest rates of some important banks are as follows-
Kotak Mahindra Bank - 6.65 per cent per annum State Bank of India - 6.95 per cent HDFC Bank - 6.75 per cent Citibank - 6.75% per cent Union Bank - 6.80% per cent Punjab National Bank - 6.80 per cent. Bank of Baroda - 6.85 per cent. Central Bank – 6.85 per cent. Bank of India - 6.85% per cent ICICI Bank - 6.90% per cent IDBI Bank - 6.90% per cent